A Step-Change Environmental Event
Deregulation , new technology , an unexpected new competitor , or dramatic price fluctuations ( e . g ., for oil ) can all trigger a stepped-up use of external advisors . This year , we have no end to the “ external ” crises - the Covid-19 pandemic , a fractured economy , and more . Many great companies were born during the 2008-2009 great recession , and I have no doubt that , despite the enormous challenges businesses are now facing , that the same will be true of 2021-2022 .
A Reorganization Or Restructuring
These types of events always create opportunities - and risks - for your client relationship . This is why “ agenda setting ” is so important . If you are at the front end of these conversations , and are seen as an insider who has provided input into the restructuring , the chances of you being part of the solution are much higher . If you ’ re among the five or ten firms which are fighting over the RFPs that emerge , you ’ re in a tough position . The details of the implementation of these reorganizations , in particular , are often overlooked when the overall strategy is set by the client , and this is a strong area of opportunity if you weren ’ t in on the ground floor of the planning .
By Speaking Truth To Power
A professional who is willing to speak the truth at a key juncture - even at the risk of antagonizing someone - may just get pulled into their client ’ s inner circle and find the relationship elevated to a new level , or find themselves on the winning end of a large proposal pitch . One CFO I interviewed , for example , talked passionately about a particular banker who had been asked to lead many large deals for the CFO ’ s corporation . “ He once said ‘ No ’ to a very large acquisition we were looking at , and had the guts to say that to the board . His firm would have reaped huge fees , but he felt it was the wrong thing to do , even though our CEO was initially very much behind the deal . That earned him a special seat at the table here .” I will often warn a prospective client about the risks of a particular program - even though it might cause them to reconsider it and not hire me - and twice I ’ ve had a CEO comment that “ No one else has talked to us about that !”
When Other Incumbents Make Mistakes
Whenever there is dissatisfaction with an incumbent , it creates an opportunity . Often , it represents a chance to get your foot in the door on a small project . That ’ s why , even if a particular competitor of yours is well-ensconced with a potential client , it can make sense to call on them regularly and build a low-key relationship . You never know when someone will slip up or when a senior executive will decide to try someone new .
When There ’ s An Incumbent Transition
If the relationship partner or some key team members at a competitor leave , this can also create an opening . This happens often in investment banking , and it ’ s not uncommon in consulting or the legal field . Again , the way you stay informed of developments like these is to have regular conversations with the client .
Leveraging Reciprocity Or Balance Of Trade
If you work with a large organization , you may be in a position to use “ balance of trade ” as a strategy for growing a larger share of wallet of your client ’ s business . One of my clients , for example , dramatically grew its relationship with
a major high-tech company on this basis . It turned out they purchased large amounts of equipment and software from the client , whereas the client used very few of their consulting services . This was brought up formally with the client ’ s top management , and the client agreed to give them the opportunity to be considered for new contracts and opportunities which had been previously sole-sourced to a competitor .
Engaging In Client Listening Activities
There are many different opportunities and channels to get client feedback , and each one presents a slightly different opportunity to uncover information that will help advance the relationship . These include : Independent , institutional feedback ( e . g ., a formal client assessment process ); Periodic , one-on-one conversations between the relationship manager and key client executives ; Senior management visits ( e . g ., your CEO meeting with the client ’ s CEO ); and Client surveys .
Making Targeted Investments
Investments in a client relationship can take many forms , and they can often form the basis for “ Agenda Setting ” events that are designed to create a dialogue about the client ’ s key priorities . For example : “ Deep Dives ” into an issue of interest for a particular executive ; A free project ; Market research to create proprietary data and insights ; Bringing external resources
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